China launches probe into struggling shadow bank Zhongzhi; China Says Multiple Pathogens Are Behind Spike in Respiratory Illnesses
'Still suffocated': Mourning China's 'zero-COVID' protests a year on; Taiwan Draws Clear US-Versus-China Battle Lines in Key Election; China, Japan, Korea Ministers Agree to Push for Leaders’ Summit
Welcome to this issue of The China Brief. Today is November 26, 2023. Here at The China Brief, we bring you the latest news on China's politics, economy, and society from global media sources, along with exclusive expert analysis. If you find our content helpful, please subscribe to our newsletter.
'Still suffocated': Mourning China's 'zero-COVID' protests a year on
Japan Times
Last year, protests broke out in Shanghai calling for an end to zero-COVID measures and even the toppling of the ruling Communist Party and its leader Xi Jinping. One year later, there is a subtly increased police presence on main junctions in Shanghai, but otherwise, there is no visible sign of the protests. However, for those involved in the demonstrations, the memory of the events remains.
China Says Multiple Pathogens Are Behind Spike in Respiratory Illnesses
Bloomberg
China’s health commission has stated that a combination of pathogens is causing a surge in acute respiratory infections. Influenza is one of the main causes, but other germs such as rhinovirus, mycoplasma pneumoniae and respiratory syncytial virus are also circulating. Outbreaks of respiratory diseases have been hitting children particularly hard, with anxious parents waiting hours for their children to see a doctor. The World Health Organization has requested more information from China on the situation, but has said that the level of illness is high for this time of year.
China launches probe into struggling shadow bank Zhongzhi
Financial Times
Chinese authorities have launched an investigation into Zhongzhi, one of the largest conglomerates in the country's shadow financing market. The probe comes after the group revealed that it was "severely insolvent" and facing a shortfall of around $36.4bn. Zhongzhi and its affiliate investment group, Zhongrong, missed payments on several products earlier this year. Chinese policymakers have implemented various support measures in a bid to reverse the slowdown in the property sector, which had previously contributed over a third of economic growth. Beijing police said Zhongzhi was suspected of committing "illegal crimes".
How geopolitics caught up with Canada
Financial Times
Canada's long-held view of itself as a "fireproof house" is being challenged as the country finds itself entangled in foreign policy dilemmas with India and China. Canada has accused China of interfering in its domestic politics and criticised the Chinese military for flying dangerously close to its aircraft. It has also accused India of being involved in the fatal shooting of a Canadian Sikh. The country is grappling with how to conduct a foreign policy that aligns with its political identity while authoritarian governments gain influence and economic power shifts to Asia. The changing global landscape has led Canada to rely on two principles: defending its sovereignty and employing "pragmatic diplomacy" to engage with nations with different perspectives to prevent conflicts. Canada is increasing its presence in the Indo-Pacific and boosting its diplomatic and military presence in the region. It is also considering engagement with China and India to stabilise relations. While Canada is taking a firm stance against China's actions, it is also mindful of the need for constructive dialogue. However, the opposition Conservative party is pressuring Prime Minister Justin Trudeau to be tough on China, which may limit his ability to engage in dialogue.
Chinese travel firms prepare for return of foreign tourists as outlook improves
South China Morning Post
Chinese travel agencies are stepping up marketing efforts to attract overseas tourists to China, taking advantage of the warming relationship between the US and China following a recent meeting between the two countries' presidents. Trip.com Group, China's largest online travel firm, has pledged to invest in areas such as marketing and technology over the next three years to bolster its inbound travel business. The recovery of inbound tourism will help strengthen China's fragile economy, which has suffered from the Covid-19 pandemic and worsening relations with Western countries.
The Hacked Bank ICBC Paid Just $1 for Its Place on Wall Street
WSJ
Industrial & Commercial Bank of China (ICBC) is dealing with the fallout from a cyberattack on its New York broker-dealer arm, ICBC Financial Services (ICBC FS), which occurred earlier this month. The cyberattack disrupted the business and raised concerns about the fragility of the largest cash market in the world. The attack highlights the risk of cyberattacks to companies, particularly financial firms, which can impact profits and reputations, as well as raise concerns about the security of the financial system.
Taiwan Draws Clear US-Versus-China Battle Lines in Key Election
Bloomberg
Opposition parties in Taiwan have failed to unite behind a single candidate for the upcoming presidential election, potentially benefiting the incumbent Democratic Progressive Party (DPP). The opposition alliance's collapse makes Chinese President Xi Jinping’s aim of voluntary unification with Taiwan less likely. Vice President Lai Ching-te, the DPP's candidate, wants to strengthen Taiwan's ties with the US. The opposition candidates, the Kuomintang’s Hou Yu-ih and the Taiwan People’s Party’s Ko Wen-je, plan to restart direct talks with Beijing. However, support for Lai has dipped, and the DPP could lose its majority in the legislature.
Changan Auto, Huawei Sign Memo to Set Up Smart-Car Systems Unit
Bloomberg
Chongqing Changan Automobile Co. has signed a memorandum of cooperation with Huawei Technologies Co. to invest in a new company that will design and produce intelligent automotive systems and components. Changan Auto will take a stake of up to 40% in the new company, which will help the company shift towards becoming a low-carbon, smart-transportation technology firm. The partnership is not expected to have a significant impact on the company's operating results this year.
China, Japan, Korea Ministers Agree to Push for Leaders’ Summit
Bloomberg
The foreign ministers of China, Japan, and South Korea have agreed to push for a leaders' summit of their three nations in the near future. The process had been on hold since 2019 due to the pandemic and political tensions. The foreign ministers also agreed to jointly seek to resolve the problem of North Korea's nuclear development. South Korea has been seeking to hold another leadership meeting among the three countries, with the nations having drifted apart in recent years as Japan and South Korea move closer to Washington while Beijing clashes with the US over a range of issues. The US and its partners have also been pressing China to use its influence on North Korea to rein in its nuclear ambitions.
The wars shaping the new world order
Japan Times
The article discusses how the current crises and conflicts in the world are highlighting the shift in the geopolitical landscape. It suggests that the wars in Gaza and Ukraine could potentially lead to a third war over Taiwan. The author argues that China, specifically President Xi Jinping, may see these wars as an opportunity to weaken the United States by depleting their stockpiles of weaponry. The longer these wars continue, the better it is for China's goal of incorporating Taiwan into the People's Republic. Overall, the article suggests that there may be a shift to a new world order in the making.
Hong Kong team says new cool white ceramic may cut air conditioning costs
South China Morning Post
Researchers in Hong Kong have developed a cooling ceramic with near-perfect solar reflectivity, which could help reduce the energy consumption of indoor air conditioning. The ceramic is capable of lowering indoor temperatures by up to 2.5 degrees Celsius when applied to roofs, compared to ordinary white tiles. The material has a solar reflectivity of 99.6% and is resistant to UV degradation and fire. Carbon emissions from space cooling have nearly tripled since 1990, and air conditioners are on track to be a leading driver of global electricity demand in the coming decades.
China ministry seeks more fever clinics to combat respiratory illness surge
Yahoo US
China's health ministry has called on local authorities to increase the number of fever clinics as the country faces a surge in respiratory illnesses. The spike prompted the World Health Organization (WHO) to ask China for more information, after a report highlighted clusters of undiagnosed pneumonia in children. The WHO and China have faced scrutiny over the transparency of their reporting during the early stages of the pandemic. The Chinese State Council warned on Friday that there was a risk of a rebound in COVID-19 infections.
Japan complains over S. Korea's "comfort women" ruling in talks
Nikkei Asia
Japanese Foreign Minister Yoko Kamikawa has expressed regret over a South Korean court ruling in favor of former "comfort women" seeking compensation from the Japanese government. Kamikawa and her South Korean counterpart, Park Jin, condemned North Korea's recent military satellite launch and reaffirmed their cooperation in addressing issues related to the country. The court ruling in South Korea denies the concept of "sovereign immunity," under which a state cannot be tried in a court in another country. Japan has argued that all issues stemming from its colonization of the Korean Peninsula were resolved under a 1965 bilateral agreement and a 2015 accord.
China, Japan top diplomats agree to reopen strategic dialogue on hold since 2020
South China Morning Post
China and Japan have agreed to open more lines of communication and hold strategic dialogue following talks between the countries' top diplomats. Chinese Foreign Minister Wang Yi and his Japanese counterpart Yoko Kamikawa met in South Korea and agreed to carry out regular consultations and bilateral security talks. The meeting comes after the leaders of the two countries reached a consensus to pursue mutually beneficial relations. However, differences between the two countries emerged during the talks, with Wang calling on Japan to abide by the one-China principle and Kamikawa expressing concern for peace and stability in the Taiwan Strait.
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